Asian markets grow after China ends travel quarantine

Queues for Covid-19 tests at a Shanghai hospital.

Asian markets rose on Tuesday after China said it would end a quarantine on arrivals, boosting hopes of a revival in the world’s second-largest economy and boosting oil, which continued its rise in ‘rising on fears of Russian production cuts.

China had abruptly reversed its strict pandemic restrictions even as a surge in infections began to overtake the country.

The sidewalks had torpedoed the economy and sparked protests across the country. The latest easing will see three years of border controls end on January 8, when Beijing downgrades Covid-19 to a class B infectious disease, ending mandatory quarantine for overseas arrivals.

The news has people in China scrambling to find flights abroad and will be a big boon for business travel in the world’s second-largest economy.

Tokyo, Seoul, Shanghai and Singapore were all higher, while markets in Hong Kong and Sydney were still closed for the Christmas holiday.

After a holiday for commodity traders on Monday, oil continued to rise after a top official said Russia could cut up to seven percent of its output next year.

Production was also reduced by freezing conditions in the United States, where more than 1.8 million barrels per day of oil processing capacity in Texas were affected by the extreme weather, Bloomberg News reported.

Both Brent Crude and West Texas Intermediate jumped nearly one percent on supply shortfalls and expectations of renewed demand from China.

Markets were boosted by a set of fresh data last week that indicated a slowdown in US inflation, as well as a pick-up in consumer spending, which saw Wall Street post holiday gains of Christmas

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